HLAS

In 2024, we saw numerous legal cases scrutinising the VAT rating of food and drink, and it looks like this trend is set to continue into 2025! The VAT treatment of food and drink has long been a contentious issue, but in the case of Global By Nature Ltd v HMRC (TC09396), we see the first instance of a tribunal or court examining VAT law specifically in relation to ‘sports drinks’. Under VAT legislation, food and drink (excluding catering) can generally be zero-rated, but there is an extensive list of exceptions that are subject to VAT at 20%. One such [...]

It is possible to claim Income Tax relief on eligible employment expenses that have not been reimbursed by your employer. If you file a self assessment tax return, relief must be claimed on the employment pages, but for employees who do not file a self assessment, it is possible to claim tax relief using an online form (P87). This follows a period during which HMRC had temporarily suspended the online form process due to a high number of ineligible claims being made. When making a claim it will be necessary to provide evidence of the expenses incurred. Expenses on which [...]

HMRC has issued new guidance on a change in the interpretation of how Double-Cab Pickup (DCPU) vehicles should be classified for car benefit, capital allowances, and certain deductions from business profits. Previously, HMRC accepted that if a DCPU had a payload of 1 tonne or more, it was classified as a goods vehicle rather than a car, making it eligible for beneficial capital allowances and favourable benefit-in-kind treatment. Following the government’s announcement in the Autumn Budget 2024, from April 2025 (1st for companies, 6th for individuals), HMRC will no longer apply the payload test. Instead, the classification will be based [...]

With the tax/financial year end approaching, now is a good time to check that you’re making the most of the available reliefs and allowances available to you. Please talk to us if you think any of the issues affect you. Savings If you have some spare cash, an obvious tax planning point might be to maximise your ISA allowances for the 2024/25 tax year (currently £20,000 per person). If you are 18 or over, but under 40, you can open a Lifetime ISA to save for your first home or retirement. You can put in up to £4,000 each year, [...]

A new agreement between the UK and Switzerland, announced last week, will make it easier for UK-qualified business professionals to work in Switzerland and vice versa. The agreement covers a wide range of professions, including lawyers, auditors, driving instructors, cabin crew, and anaesthesia associates. Professionals and businesses looking to supply services in regulated sectors abroad typically need their qualifications recognised by the destination country. This new deal is expected to provide a boost to UK-Swiss trade. Government statistics indicate that trade between the two countries is currently worth £46 billion annually, with professional and business services accounting for £8 billion. [...]

HM Treasury has confirmed that the Chancellor will be hosting a series of Industry Forums in January and February with the aim of seeking views about the best way to deliver long-term in the sector and across the country. Financial services have been identified as a key growth-driving sector in the government’s Modern Industrial Strategy. The Industry Forums will help to make sure that the key issues that matter most in the financial services industry are considered as part of the government’s upcoming Financial Services Growth and Competitiveness Strategy. The forums will be chaired by the Chancellor and the Economic [...]

As the UK tax year-end approaches on 5 April, now is a great time to review your business finances and explore tax planning opportunities, especially if you're self-employed. Effective tax planning can help reduce tax liabilities, improve cash flow, and strengthen your financial position. Here are some areas to consider: Capital allowances A key area to review is capital allowances. If your business has invested in equipment, vehicles, or machinery, you may qualify for tax relief under the Annual Investment Allowance. Taking a closer look at these purchases before the tax year-end ensures you don’t miss out on valuable deductions. [...]

A new scheme administrator to help businesses reduce packaging usage was introduced last week. PackUK (known as PecynUK in Wales) will also encourage the adoption of more sustainable packaging alternatives. As part of the UK’s four-nation Extended Producer Responsibility for Packaging (pEPR) scheme, PackUK will implement the ‘polluter pays’ principle. This will shift the responsibility of managing household packaging waste from taxpayers and local authorities to businesses that use and supply packaging. PackUK will be responsible for setting and raising pEPR fees for affected businesses. Additionally, it will make packaging waste disposal payments to local authorities in exchange for improved [...]

There are just a few days remaining to file your 2023-24 tax returns before the 31 January deadline. Missing the deadline could result in penalties, as well as interest on any tax paid late. If you're self-employed and usually handle your own tax return, you may notice that the 2023/24 return includes additional entries due to basis period reform. This could also lead to extra tax to pay. If you need assistance with your tax return, please don’t hesitate to get in touch. We’re more than happy to help!

A report released by the Public Accounts Committee (PAC) has raised further concerns about HM Revenue & Customs’ (HMRC) phone service. It revealed that nearly 44,000 customers were cut off without warning after waiting on hold for more than an hour during the first 11 months of last year. Having previously criticised HMRC’s phone service, the committee found that it had worsened since its last report. The PAC stated that HMRC’s service had “damaged trust in the tax system” as a result. Geoffrey Clifton-Brown MP, the chair of the PAC, has suggested that HMRC might be deliberately degrading the service [...]